v3.25.2
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
INCOME TAXES  
INCOME TAXES

(11)   INCOME TAXES

The pre-tax income from continuing operations on which the provision for income taxes was computed is as follows for the years ended December 31, 2024 and 2023 (in thousands):

​

​

​

​

​

​

​

​

​

    

2024

    

2023

United States

​

$

3,627

​

$

12,579

Foreign

​

 

—

​

 

—

Total

​

 

3,627

​

 

12,579

​

Income tax expense consists of the following for the years ended December 31, 2024 and 2023 (in thousands):

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Current tax expense:

 

​

  

 

​

  

Federal

​

$

1,136

​

$

3,433

State

​

 

431

​

 

1,717

Total tax expense:

​

 

1,567

​

 

5,150

Deferred tax benefit

​

 

  

​

 

  

Federal

​

 

(711)

​

 

(1,873)

State

​

 

(223)

​

 

(430)

Total deferred tax benefit

​

$

(934)

​

$

(2,303)

Total

​

$

633

​

$

2,847

​

A reconciliation of income tax computed at the U.S. statutory rate of 21% to the effective income tax rate is as follows:

​

​

​

​

​

​

​

​

​

    

2024

    

​

2023

 

Statutory rate

 

21

%  

​

21

%

State taxes

 

3

%  

​

7

%

Meals and entertainment

​

10

%  

​

3

%

Excess officer's compensation

​

1

%  

​

3

%

Stock based compensation

 

—

%  

​

(7)

%

Research and development credit

 

(17)

%  

​

(4)

%

Other

​

(1)

%  

​

—

%

Effective rate

 

17

%  

​

23

%

​

The tax effects of temporary differences that give rise to deferred tax assets (liabilities) at December 31, 2024 and 2023 are as follows (in thousands):

​

​

​

​

​

​

​

​

​

    

2024

    

2023

Deferred tax assets:

 

​

  

 

​

  

Accrued expenses

​

$

40

​

$

34

Lease liability

​

 

3,652

​

 

4,540

Inventory

​

 

263

​

 

261

Stock based compensation

​

 

611

​

 

371

Section 174 costs

​

 

4,259

​

 

2,829

Deferred tax assets

​

$

8,825

​

$

8,035

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

  

​

 

  

Property and equipment

​

 

(447)

​

 

(469)

Finance lease

​

 

(294)

​

 

(149)

Prepaid expenses

​

 

(215)

​

 

(198)

Right-of-use asset

​

 

(2,680)

​

 

(3,172)

Amortization

​

 

(390)

​

 

(182)

Deferred tax liabilities

​

$

(4,026)

​

$

(4,170)

​

​

​

​

​

​

​

Net deferred tax assets

​

$

4,799

​

$

3,865

​

The accounting standard related to income taxes applies to all tax positions and defines the confidence level that a tax position must meet in order to be recognized in the financial statements. The accounting standard requires that the tax effects of a position be recognized only if it is “more-likely-than-not” to be sustained by the taxing authority as of the reporting date. If a tax position is not considered “more-likely-than-not” to be sustained, then no benefits of the position are to be recognized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. This standard also provides guidance on the presentation of tax matters and the recognition of potential interest and penalties. As of December 31, 2024 and 2023, the Company does not have an unrecognized tax liability.

The Company does not classify penalty and interest expense related to income tax liabilities as an income tax expense. Penalties and interest are included within general and administrative expenses on the consolidated statements of income.

The Company files income tax returns in the U.S. and various state jurisdictions, and there are open statutes of limitations for taxing authorities to audit our tax returns from 2021 through the current period.